19990618Order No 28074.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF CCCID, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE TELECOM-MUNICATIONS SERVICES.
)
)
)
)
)
)
CASE NO. GNRT9814

ORDER NO. 28074

On October 6, 1998, CCCID, Inc. (CCCID; Company) applied for a Certificate of Public Convenience and Necessity to provide local exchange telecommunications services in U S WEST exchanges. CCCID proposes initially to provide local telecommunications services and exchange services to targeted customers within U S WEST’s Boise area. The Company may obtain other business and residential customers throughout the U S WEST serving area at a later date.
On May 5, 1999, the Commission issued a Notice of Modified Procedure soliciting comments in response to CCCID’s Application. The only party to respond was the Commission Staff.

Staff’s Comments
CCCID is a wholly owned subsidiary of Connect Holding Corporation (CHC). CHC, which does not operate in any jurisdiction and has no independent source of income, has the same ownership and management as Connect Communications Corporation (CCC). CCC has a contract to serve two large multi-state business accounts with extensive telecommunications requirements. CCC intends to implement its contract through affiliate subsidiaries, such as CCCID, in each state. CCC is funding the startup operations and providing management expertise to CCCID until CCCID is able to sustain its own operations.
CCCID will install a switch in Boise through which it will offer a broad variety of local exchange services. It has an approved interconnection agreement with U S WEST for direct connections to its customers. Transmission will be provided by selected toll carriers. CCCID will maintain its own switching facilities.
Initially, CCCID will implement service in the Boise area for its two contracted business accounts and will expand logically from that initial site as business opportunities warrant. It has no immediate plans to serve in any other territories and projects that it will be at least six (6) months before CCCID obtains other customers in Idaho. The company has no plans to offer service initially via bundled resale, and therefore, will not be likely to serve residential customers. Still, the Company wants to have broad enough authority to do so in the future.
Inasmuch as CCCID was created solely to provide service to CCCID’s Idaho customers, it has not established a financial history and relies upon the financial resources of CCC. However, CCC has only been in existence for a short time and could only provide financial data for the 1998 year because that is the only complete year it has been in existence. CCCID proposes that the company clearly has assets that can sustain the relatively modest investments required of CCCID. Its owners will finance its operations through to profitability. CCCID believes it has a very low risk associated with its operations. Staff observes that with only two large business customers, to start, there is little risk to Idaho consumers. However, CCCID has indicated a willingness to post a reasonable surety bond to alleviate any concerns on the part of the Commission, and indeed, Staff recommends a $50,000 bond to be carried for two years in lieu of evidence of financial stability.
CCCID has completed its revisions to its illustrative tariff so that it conforms to Idaho law and the IPUC rules. Staff recommends that the Commission approve CCCID’s application for a Certificate of Public Convenience and Necessity, contingent upon the Company's securing a $50,000 bond to be carried for two years.

FINDINGS
We hereby approve CCCID’s Application for a Certificate of Public Convenience and Necessity to provide local service in U S WEST exchanges. We find that CCCID has satisfied all of the procedural requirements set forth in Order No. 26665 issued in Case No. GNR-T-96-4 (the Commission’s procedural Order). We note that on June 11, 1999, the Commission received a performance bond in the amount of $50,000 from CCCID issued to the “people of the State of Idaho.” We believe that this adequately addresses the concerns raised by Staff in its comments regarding the lack of operating history available for CCCID and adequately protects the Company’s future Idaho customers.
In light of the foregoing, we hereby approve the Application of CCCID for a Certificate of Public Convenience and Necessity to provide local exchange telecommunication service in U S WEST’s Idaho exchanges.

O R D E R
IT IS HEREBY ORDERED that the Application of CCCID for a Certificate of Public Convenience and Necessity to provide local exchange telecommunications services in U S WEST’s Idaho exchanges is granted.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of June 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/\O:GNR-T-98-14_bp

ORDER NO. 28074 1

Office of the Secretary
Service Date
June 18, 1999